Fiat Chrysler Automobiles N.V. (NYSE: FCAU) CEO Sergio Marchionne first mentioned in August that Ferrari N.V. (NYSE: RACE), the FCA spin-off Marchionne also leads, would likely build a sport utility vehicle (SUV) with a Ferrari badge.
Marchionne said in New York Monday morning that Ferrari will spend about two and a half years deciding how and how many to produce.
Other high-performance carmakers like Lamborghini and Porsche already build and sell SUVs. Rolls-Royce and Bentley also have SUV models. Prices range from around $60,000 for the base Porsche Cayenne to $200,000 for the Lamborghini Urus, $297,000 for the Bentley Bentayga, and $330,000 for the Rolls-Royce Cullinan.
An August report in Autoweek that “we can be pretty confident” that Ferrari would build an SUV based on its GTC4Lusso, a two-door (three, counting the back) station wagon, or a similar design. The GTC4Lusso carries a base price tag of around $305,000.
Figure a Ferrari SUV to come with an even higher price tag, maybe even more than the Rolls-Royce. That gives the company an entry into a market that is expected to account for two-thirds of the auto industry’s expansion through 2024.
SUVs are particularly popular in the United States and China, the world’s two largest new car markets and high-end SUVs are among the most popular versions. The vehicle would also give a sharp boost to Marchionne’s plan to double Ferrari’s profit by 2022.
Ferrari’s stock traded up about 2.6% early Monday afternoon at $115.55 in a 52-week range of $50.39 to $118.10. The consensus 12-month price target on the stock is $109.57.